FTSE 100 starts week on back foot, GBP jumps, Bitcoin above $60K By Investing.com

Key Points

• FTSE 100 closing price of 6890.10, -0.4%
• GBP higher as UK lockdown measures eased
• Airlines lower after cautious HSBC note
• C4X Discovery (LON:C4XD) rallies after Sanofi (PA:SASY) deal
• Bitcoin steady near $60,000 after weekend jump
• WTI and Brent crude futures higher

By Samuel Indyk

Investing.com – The FTSE 100 closed Monday’s trading session in negative territory, pulling back from the multi-month gains seen last week. Airlines were lower after a cautious note from HSBC following the UK government’s announcement last week of its plan to resume international travel. HSBC said the traffic light system could hurt budget airlines’ earnings expectations and the likes of Wizz Air (LON:WIZZ), Ryanair (LON:RYA) and easyJet (LON:EZJ) all declined. IAG (LON:ICAG) shares also fell but the losses were less pronounced.

AIM-listed drug discovery company C4X Discovery saw its shares jump after it announced a new licensing deal with French pharmaceutical giant Sanofi. The licensing agreement for C4X’s oral IL-17A inhibitor programme could be worth up to €414mln.

GBP was stronger against the USD and EUR. GBP/USD initially broke below 1.3700 in early Asia-Pacific trading but reclaimed the handle and pushed towards the 21DMA of 1.3806. EUR/GBP dropped back slightly after the strong performance last week as the UK reopens parts of its economy while much of the Eurozone considers stricter measures amid rising coronavirus cases.

Over the weekend, Bitcoin once again broke above $60,000 while the second largest cryptocurrency Ethereum hit a new all-time high. The latest price movement comes ahead of the public listing of cryptocurrency exchange Coinbase which is set to go public via a direct listing on Wednesday.

WTI and Brent crude futures both jumped on Monday amid an increase in geopolitical tensions and on prospects for a strong economic rebound. On Sunday, Fed Chair Powell gave an interview to CBS where he stated that the outlook had “brightened substantially”, offering hopes of a pick up in demand. Meanwhile, Yemen’s Houthi rebels announced they had attacked Saudi Arabian oil facilities in Jubail and Jeddah using drones and two ballistic missiles.